Erring contractors face stiff sanctions for bidding mess

MANILA, Philippines–The Department of Public Works and Highways (DPWH) on Monday warned erring contractors and suppliers of construction materials for state infrastructure projects that they face stiff sanctions for violations of bidding rules and regulations.

Public Works Secretary Rogelio Singson on Monday issued DPWH Order No. 17, which called for the enforcement of the agency’s “three-strike” policy against contractors and suppliers taking part in the public bidding for DPWH projects.

Maintain track record

Contractors doing business with the DPWH “must maintain a good track record to be able to continue participating in public bidding conducted by the agency,” Singson stressed.

Under the DPWH policy, contractors face stiff sanctions, including one- to two-year suspension from taking part in any public bidding, due to the following bidding-related violations: securing bidding documents but later withdrawing from the bidding process without a valid cause and submitting insufficient or defective bidding documents, among others.

Three strikes

“For the first strike or bidding-related violation, the bidder shall be issued a warning. For the second violation, a second warning while the third violation calls for a one-year suspension. The second set of three strikes, a two-year suspension follows,” Singson explained.

Follow rules

The DPWH, he said, wanted to “ensure that all participating entities diligently follow (bidding) procedures and prohibit those who habitually defeat the purpose of public bidding.”

The directive “also applies to members of the DPWH Bids and Awards Committee,” he said, adding that “failure on the part of BAC members to submit complete and verified 3-strike reports (on erring firms) shall face sanctions provided for under Civil Service Commission rules and regulations.”

Earlier, at least 89 contractors were blacklisted by the DPWH for their failure to comply with contractual obligations, misrepresentation and engaging in bidding irregularities.

Blacklisted firms

In a statement, where it released the names of the blacklisted firms, the DPWH reminded more than 2,600 contractors to “engage in transparent and competitive bidding of infrastructure projects.”

Aside from the DPWH, the erring contractors had also handled projects of the Department of Education, Department of Health, National Housing Authority, National Irrigation Authority, Philippine Ports Authority, and the National Power Corp., among others.

Singson appealed anew to contractors to strictly comply with the approved project plans and specifications.

“Do not shortchange the Filipino people by engaging in corrupt practices,” he warned.

Transparency

Noting that the procurement process for the DPWH’s 2015 projects, worth nearly P270 billion, had started, he asked contractors to “help the department’s transparency and accountability efforts by not conniving with anyone in the DPWH or giving commissions to politicians or contractors in securing projects from the agency.”

Late last year, the DPWH chief admitted that the days of rigged bidding and collusion between some contractors and corrupt DPWH personnel were not yet over.

Based on the “results of bidding conducted by central, regional and district engineering offices, we can conclude that some contractors were favored by some of these offices.”

Patterns

“There are also patterns wherein the same contractors joined in the bidding process where winning bidders were rotated among them,” he disclosed.

Another high DPWH official said that some agency personnel had been placed under preventive suspension for colluding with some contractors in rigging the public bidding.